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Key Topics
Requirement
1- Write a report on Enterprise System in 1000 words with reference to Havard.
Solution
Introduction
In this case study, an effort will be made in order to evaluate the reasons behind the failure of the implementation of ERP- a business process management software which lets a firm manage their business and connect to human resources in a better way through a system of integrated applications by an organization named Comp group. The study is about clarifying the issues that arose during the implementation of SAP R/3 that is the part of SAP (the biggest software company of Germany that implements Enterprise Resource Planning for Real-Time syncing between Data Base, Application Server and Client) by COMP group in Saudi Arabia (Al-MAshari and Al-Mudimigh, 2003, pp 21-33). The analysis is to be done to clear ideas about the human aspects, IT enabling roles, cultural and structural changes, strategies etc that should be implemented to successfully launch ERP.
Purpose and scope of Enterprise Resource Planning
All departments and functions across all segments of a business is being integrated by Enterprice Resource planning into a single entity serving the same purpose (Managementstudyguide.com 2019). This is a smarter and efficient way to implement actions that were initially done through the MRP(Material Requirements Planning-other software intended to plan, schedule, and control the whole manufacturing systems). The case study is to take us back to 1993 where COMP group faced new challenges thanks to suddenly intensified competition between the market challenges, globalization issues that forced it to become customer-focused group, increased cost at all levels and obvious inabilities of its equipment (Managementstudyguide.com 2019). The company rendered the thought of continuing with the MRP system. ERP system allowed COMP to increase effective communication between the departments provided an brief and elaborate perspective over the overall operations of the business, managed its finances. These all meant reduced errors, higher productivityand more efficient operations. At the time when COPE was failing to increase empowerment due to filling of overlapping positions and had one of the most outdated software system running on running on a supermini NCR operating system, third-generation language and COBOL, SAP R/3 paved ways by integrating SD, MM, CO, HR etc that resulted as a whole in connection with the company and the system. SAP R/3 came with an unprecedented Internet Communication Manager (ICM)- set up a connection to the internet that supported SMTP, HTTP. SAP R/3 is equipped to be implemented in Industry analysis, workflow analysis, project system, fixed asset management, controlling, financial accounting, human resources, plant maintenance, quality management, production planning, material management and sales and distribution(Al-MAshari and Al-Mudimigh, 2003, pp 21-33). The COMP group analyzed the working of Enterprise and implement it after looking at the profit-making pictures of other groups.
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Place Your OrderEvaluation of Implementation Approach
ERP evaluation criteria and functionality analysis differ from one organization to another. The basic point to remember is:
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Relationship with Customers or Organizations
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Capacity Requirements Planning and Material Requirement Planning
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Bill of Materials
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Logistic management
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API Integration
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Installation Type
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Support
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Previous Experience with Vendor
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Advanced Planning System
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Business Process Management
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Available to Promise
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Customer Credit Management
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Lean Manufacturing
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B2C Commerce
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Advanced Allocations
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Tax Administration: Payroll system
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Financial Stability
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Relationship with Vendors
COMP group knew the need to correctly implement the ERP for optimal utilization. It implemented this system in three different stages which consisted of creating an objective and also the lineup different procedures within the firm. This was done for the purpose of designing a concept based assignment and also for the purpose of the application of the plan(Huber et al. 2016, p.11). This procedure of establishing the objectivesalong with the process of lining up the different procedures that gave appropriate permission for the high standard plan to enhance its business condition keeping in mind the future aspects. The company knew the idea of a comprehensive pattern which meant a great number of details to be required in relation to the different procedures of the organization.
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Analysis of Change Management
The Analysis was done on the basis of the feelings of the employees within the Comp firm. The results are:
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The technological advancement in certain sectors of the company has not been par
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The resource planning to has not paced up with time
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Lack of adequate experience added to the cause
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The key criteria for the project were not clear
These all factors resulted in the failing of the project(Alsulami, Scheepers and Rahim, 2016).
Conclusion
SAP day by day is becoming less expensive to implement and easier to use, while greatly increasing in functionality and technological sophistication. It has been always a huge deal to talk about. SAP has always been software which is touted to be multi-national business software built to handle the most complex problems. It handles multiple currencies, multiple languages, multiple product lines and even multiple companies within one common software application. The key point is that it has been very successful in tieing together all of the disparate systems in a company, from sales, financials, procurement, production planning, manufacturing, inventory management, and distribution. Before this technology a company had to buy one stuff from some vendors, another linked stuff from the others and that used to create problems since the companies could not trust the data flow sources among them. To get everyone to agree to definite terms it was necessary to implement ERP. Also, a great deal of the expense of implementing SAP software is the business process re-engineering which is harmonization of product, part, and customer numbering, the forming of a global team of internal and external experts; and the hashing through of how an integrated business should work. The complexity of SAP talked above arises due to the fact that different industries function differently, and some can be handled by the standard, yet highly configurable SAP software. At last, it can be concluded the process of resource planning must be implemented in a way that it gets synced with SAP software criteria. The analysis has been done to put forth the case why SAP R/3 did not suit Comp group and what are the ways to get over the line, The ERP implementation no doubt is quintessential for a firm but doing it wrong is a disaster for any firm.
Reference List
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Al-MAshari, M. and Al-Mudimigh, A., 2003. ERP implementation: lessons from a case study. Information Technology& People, 16(1), pp.21-33.
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Alsulami, M, Scheepers, H. and Rahim, M.M., 2016, January.A Comparison between Organizational Stakeholders' and External Consultants' Perceptions of CSFs Affecting ERP Life Cycle Phases. IN 2016
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Huber, M., Zimmermann, S., Rentrop, C. and Felden, C., 2016. The relation of shadow systems and ERP systems—Insights from a multiple-case study. Systems, 4(1), p.11.
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Managementstudyguide.com. (2019). Enterprise Resource Planning (ERP) - Meaning, its Need and Advantages. [online] Available at: https://www.managementstudyguide.com/enterprise-resource-planning.htm [Accessed 10 May 2019].
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